The UAE implemented a new telemarketing law with Cabinet Decision (56) of 2024. This new telemarketing law aims to change telemarketing by avoiding or preventing unwanted calls and upholding ethical standards within the telemarketing industry. In addition, Cabinet Decision No. (57) of 2024 also detailed administrative penalties for new telemarketing law violations. The new regulations, fines, and enforcement are detailed in this article.

Important Provisions of New Telemarketing Regulations.

A structured framework for telemarketing activities within the UAE has been established through the above-mentioned cabinet decision. Under Article 1, a telemarketing phone call is defined as any telephone call made by a company or an individual for the purpose of marketing, advertising or promoting the sale of products or services including marketing SMS and social media messages meant to promote sales. This law also developed the Do Not Call Registry (DNCR), which supervises a unified national registry and it aims to protect consumers from unwanted telemarketing calls. Article 2 of the new telemarketing law describes the important objective of the regulations, which is to organize telemarketing activities, support social and economic stability, minimize unwanted calls as well as protection of consumer privacy.

The scope of this regulation is explained under Article 3 and extends the regulation’s applicability to all UAE-licensed companies, including those in free zones, and prohibits individuals from conducting telemarketing activities without appropriate licensing. Furthermore, Article 4 stipulates obligations for companies that involve such acts: prior approval requirement in order to carry out telemarketing; use of the local registered telephone numbers; keeping records concerning every call made; respecting DNCR. Additionally, companies are also required to provide training on ethical marketing practices and adhere to specific calling hours.

 Article 5 establishes procedures to stop unethical telemarketing practices. Some of these measures include banning unfair or misleading pressure tactics; limiting the time of calls to 9:00–18:00, which excludes DNCR-listed phone numbers and limiting follow-up calls.

According to Article 6 of the telemarking law emphasis on consumer protection by allowing consumers to register with the DNCR, file complaints, and ensure that their personal information will be kept confidential. Administrative fines are stipulated by Article 7, which specifies the penalties that can be imposed on the basis of the intensity of the violation. Some of these administrative penalties may include warnings and license cancellation. Further, Article 8 stipulates the cooperative efforts of various authorities to enforce these regulations and educate both consumers and companies. In Article 9, the Ministry, the Central Bank, the Securities and Commodities Authority, and local authorities are all outlined in detail regarding their respective responsibilities in the supervision of telemarketing activities. Furthermore, the Minister has the discretionary power to issue further decisions in accordance with Article 10, which allows them to handle any violations of the regulations.

Administrative Penalties Under Cabinet Decision (57) of 2024

These administrative penalties, start with warnings and fines, which can lead to license suspension or cancellation if the company violates the law. Administrative penalties apply to individuals as well as companies. Besides administrative fines, individuals may face financial penalties or restrictions. 

Both the federal authorities and the central bank are responsible for collecting the fines, and the fines can be reevaluated through proposals that are coordinated with the relevant authorities. The affected parties may permit to file complaints through the grievance process within 15 days of receiving a notice, and decisions are made within 30 days of receiving the notice.

The Specific Violations and Penalties Under Cabinet Decision 57/2024.

1. Companies that engage in telemarketing without prior approval may face higher penalties of fines: AED 75,000 for the first offense, AED 100,000 for the second, and AED 150,000 for the third, as outlined in Article 4/1.
2. The companies that fail to provide complete training on professional conduct and the DNCR may face fines of AED 10,000 for the first violation, AED 25,000 for the second, and AED 50,000 for the third, which is mentioned under Article 4 /2.
3. The use of unregistered numbers may result in fines of AED 25,000 for the first violation, AED 50,000 for the second violation, and AED 75,000 for the third violation against the user as stipulated in Article 4/3.
4. According to Article 4/5, contacting customers listed in the DNCR carries fines of AED 50,000 for the first violation, AED 75,000 for the second, and AED 150,000 for the third.
5. According to Articles 4/6 and 4/8, companies that fail to keep and submit records of telemarketing calls are subject to fines of AED 10,000 for the first violation, AED 25,000 for the second violation, and AED 50,000 for the third violation. 
6. Similarly, according to Article 4/7, if a company fails to record calls or fails to inform customers about recordings, the company will be subject to fines of AED 10,000 for the first violation, AED 20,000 for the second violation, and AED 30,000 for the third violation.
7. According to Articles 4/11 and 4/12, the penalties for not revealing the source of phone numbers or failing to introduce the company and purpose of the call vary from AED 10,000 for the first violation to AED 30,000 for the third violation.
8. Depending on the nature and severity of the violation, the fines for using aggressive tactics, deception, or making calls outside of permitted hours may vary ranging from AED 10,000 to AED 75,000. These fines are described in Articles 5/1 to 5/6.
9. Calling back consumers excessively or using automated systems improperly carries fines ranging from AED 10,000 to AED 50,000, as outlined in Articles 5/4 and 5/5.
10. Disclosing or trading consumer data without consent incurs severe penalties, starting at AED 50,000 for the first offense and increasing to AED 150,000 for subsequent violations, according to Article 6/4.

In addition, the law stipulates that individuals who make calls intended for marketing purposes may be subject to penalties. First-time offenders may be fined AED 5,000 and lose their phone numbers until the fine is paid. Repeat offenses within 30 days can result in an AED 20,000 fine and three-month suspension. Article 3/2 penalises a third offense with an AED 50,000 fine and a 12-month ban on telecommunications.

To avoid significant penalties, telemarketing companies and individuals need to learn about the new telemarketing regulations. Follow these rules to avoid legal issues and improve consumer marketing.